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"Tech dividend payments, payers and payouts are on the rise." That's the topic of a June 13 special report by Richard Lane, Moody's Investors Service senior vice president and the study's lead author. Lane and his research team expect tech dividends to approach $26 billion this year. That would be a jump of 14.3% from the 2011 level, and compares with the 10.9% average annual gain of the prior four years.

Even more encouraging, Lane opines that "an economic downturn is unlikely to undermine the ability of technology companies to support dividend payments." That's because of their ample liquidity and cash flow.

Tech payout ratios, while rising, will trail other sectors and stay below 30%, writes Lane, in part because many techs hold most of their cash abroad, as these funds would be subject to steep U.S. taxes if repatriated.

That brings us to
Dell,
which last Tuesday announced its first-ever dividend—a quarterly common payout of eight cents a share. Investors will reap some $560 million annually from the disbursement, which is expected in the third quarter.

Traded on Nasdaq, Dell's price of $12.25 (the stock hit a 52-week low Tuesday of $11.68 before rallying on the dividend news) would make for a 2.6% yield with the dividend. The company also has been repurchasing its stock, having reduced its share count by nearly 14% over the past four years. Dell said that via its dividend and share buybacks, it hopes to "increase its target range for distribution of capital to shareholders from 10% to 30% of free cash flow, to 20% to 35%."

Moody's said Dell's new dividend won't affect the computer maker's A2 long-term and Prime-1 short-term debt ratings or its stable outlook. "Dell's inaugural dividend reinforces management's confidence in generating substantial levels of free cash flow," said Stephen Sohn, senior credit officer. Founded in 1984, the Texas company had $17.2 billion of cash and investments at April 30, the end of its fiscal first quarter.

Dell plans to slash its expenses by more than $2 billion during the next three years as it seeks out more lucrative areas of technology in the face of soft sales of personal computers. The PC business could reach $47 billion in revenue by fiscal 2016, just shy of what it was five years ago. Dell is the second-largest U.S. PC maker after
Hewlett-PackardHPQ -1.002290950744559%Hewlett-Packard Co.U.S.: NYSEUSD34.57
-0.35-1.002290950744559%
/Date(1425420047719-0600)/
Volume (Delayed 15m)
:
13557098AFTER HOURSUSD34.53
-0.0399999999999992-0.11570726063060457%
Volume (Delayed 15m)
:
129152
P/E Ratio
12.996240601503759Market Cap
63815844808.0681
Dividend Yield
1.8513161700896732% Rev. per Employee
364560More quote details and news »HPQinYour ValueYour ChangeShort position
(HPQ). HP, by the way, a Dow Jones industrials component, has been paying dividends since 1965; its current quarterly is 13.2 cents a share, for a 2.4% yield.

WITH MORE THAN THREE DECADES of dividend enhancements to its credit, giant discount retailer
TargetTGT 0.411946446961895%Target Corp.U.S.: NYSEUSD78
0.320.411946446961895%
/Date(1425420422831-0600)/
Volume (Delayed 15m)
:
12876398AFTER HOURSUSD78.13
0.1299999999999950.16666666666666666%
Volume (Delayed 15m)
:
24649
P/E Ratio
N/AMarket Cap
49731822880.9247
Dividend Yield
2.6666666666666665% Rev. per Employee
198410More quote details and news »TGTinYour ValueYour ChangeShort position
(TGT) last Wednesday announced another 20% boost, to 36 cents a share from 30 cents. That translates into $158.7 million of additional cash yearly for investors. The 110-year-old Minneapolis company has been making payouts without interruption since its 1967 public debut. At a 52-week Big Board high of $59.40 a week ago, Target's stock yields 2.5% with the new dividend.

Target, which operates 1,763 stores across the U.S., plans to open its first stores in Canada in 2013. Fiscal first quarter (ended April 30) revenue at stores open at least 12 months rose 5.3%, Target's strongest performance in six years for that period. The measure is considered a key indicator of a retailer's health.

The company sweetened its full-year profit guidance in May by a nickel, to a range of $4.60 to $4.80 a share, versus fiscal 2012's $4.28.

At Target's annual shareholders' meeting in Chicago last Wednesday, CEO Gregg Steinhaffel said the company's results show that despite an uneven economy, shoppers are willing to splurge on home goods and accessories, if they are stylish and priced right. "We continue to build on what we do well," he added. Back in March, CFO John Mulligan said Target's business was generating "far more cash than we need to fund appropriate reinvestment in our core businesses." The company therefore expects to raise its quarterly to 75 cents a share by 2017 and repurchase more of its stock.

With 2011 sales of more than $60 billion, Caterpillar is the world's No. 1 manufacturer of construction-and-mining equipment, diesel- and natural-gas engines, industrial-gas turbines and diesel-electric locomotives. Its 13% increase takes the payout to 52 cents a share from 46 cents. The boost is worth an extra $156.6 million to investors annually, and at the stock price of $86 and change, it makes for a 2.4% yield.

During the last 10 years, Caterpillar's total stockholder return has been 322%, which puts it in the top 25% of the Standard & Poor's 500 in that category. The Peoria, Ill., company has made a cash payout every year since its formation in 1925 and distributed quarterly dividends since November 1933.

S&P sees Caterpillar's shares as undervalued. "Aided by strong economies in emerging markets (until a recent hiccup in Cat's construction-equipment results in China and Brazil) and the need to replace machinery and power systems in developed markets, Cat appears to be in the midst of a robust business recovery," it states. First-quarter earnings per share surged 29% above the year-ago level, on a 23% revenue rise.

Industrial goliath United Technologies' new quarterly will be 53.5 cents a common share, up 11.5% from 48 cents, for an added annual value of $200.5 million and a current yield of 2.9%. Headquartered in Hartford, Conn., UTC has distributed payouts on its common every year since 1936.

The company's portfolio of power brands incudes Pratt & Whitney jet engines, Carrier air conditioners, Sikorsky helicopters and Otis elevators, to name a few. Later this year, UTC expects to acquire airline-parts manufacturer
Goodrich
(GR) in a $16.5 billion transaction.

UTC's 52-week stock-price range is $91.83 to $66.87. The shares were recently quoted at $74.